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The Effects of the Latin American Economy on Drug Wars

The Effects of the Latin American Economy on Drug Wars. Paul Mascali . Thesis Question. How has the economy in Latin America affected the drug wars and the smuggling of illegal substances?

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The Effects of the Latin American Economy on Drug Wars

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  1. The Effects of the Latin American Economy on Drug Wars Paul Mascali

  2. Thesis Question How has the economy in Latin America affected the drug wars and the smuggling of illegal substances? Should it be Brought to a Morally Halting End, or Shall we let it Prevail to Keep the Economy from Falling Apart?

  3. Latin American History • 1820 nearly all of Latin American won its freedom from Spain • it was divided into more than 20 weaker countries by race, wealth, and geography http://www.visitlatinamerica.com/images/latin-america-map.jpg

  4. Brazil 2008 Population- 191 million Unemployment-8.7% Labor force-175 million Trade Partners U.S., China, Argentina, Germany, Japan, Nigeria, Netherlands Latin American Income Mexico 2009 Population -109 million Unemployment- 3.7% Labor force- 105 million Population below poverty line:40% Trade Partners US, China, South Korea, Japan Columbia 2009 Unemployment rate:14.2% Labor force:20.34 million Population below poverty line:55% Trade partners:US , Brazil, Mexico, Venezuela, China, Japan, Germany http://cdn.wn.com/o25/ph//2009/01/22/8ef2af1842a349f036c66ec1fe23415a-grande.jpg

  5. Predicted Economic Changes • economic boom has taken place because of cash crops • Europe and America do not buy outside products such as the ones from Latin America

  6. Corruption in Latin America • President Alberto K. Fujimori was sentenced to 25 years in prison • Jorge Garcia-“Injustice has been committed…now we must take to the streets to make ourselves heard”

  7. What is the International Global Drug Trade? The global trade in illegal drugs is worth $400 billion a year. This business is one of the most lucrative and dangerous of all criminal businesses. Globalization, banking deregulation, and free trade agreements play into the hands of drug organizations, some of which have the skills to reach multinational businesses. The illegal drug trade or drug trafficking is a global black market consisting of the cultivation, manufacture, distribution and sale of illegal controlled drugs 20 tons of cocaine coming into the U.S

  8. Understanding The Global Drug Trafficking Market The drugs business, like any other industry, is governed by the laws of supply and demand. If there is a shortage of raw material, be it coca leaf or opium, the price goes up, too much and the price goes down. The producers, whether they are peasant farmers in the Andes or synthetic drugs manufacturers in Europe, aim to minimize their costs and maximize profit

  9. How it all Began: The Opium WarsThe Global Drug Trade Back Then • Growing opium in India, the East India Company shipped tons of opium into Canton which it traded for Chinese manufactured goods and for tea • This trade had produced a country filled with drug addicts, as opium parlors proliferated all throughout China in the early part of the nineteenth century • British traders generously bribed Canton officials in order to keep the opium traffic flowing • The effects on Chinese society were devastating. There are few periods in Chinese history that approach the early nineteenth century in terms of pure human misery and tragedy • In an effort to stem the tragedy, the imperial government made opium illegal in 1836 and began to aggressively close down the opium dens

  10. The Global Drug Trade Present Day

  11. *The number of people worldwide who used an illegal drug at least once last year was 200 million* *There are 1.7 million drug related arrests in the U.S alone* The Global Drug Trade in America

  12. http://media.washingtonpost.com/wp-dyn/content/graphic/2005/06/16/GR2005061600053.gifhttp://media.washingtonpost.com/wp-dyn/content/graphic/2005/06/16/GR2005061600053.gif Drug War in Mexico • Number of gangland killings have reached 5,376 • A 117 percent increase of deaths have occurred in the year • Profits of the illegal drug trade has strengthened the ranks of the drug lords in Mexico • excess profits the drug lords have hired politicians, judges, prison guards, and police officers http://media.photobucket.com/image/mexican%20drug%20war/pushpinderbagga/march/mexicandrugmafia/mexican-drug-war-boston-pictures-10.jpg

  13. Colombian Drug Trade Marijuana Cocaine • Colombia didn’t start supplying marijuana to excess until the late 1960’s • The origin of the marijuana boom can be traced to a search by US consumers for a new supply source of marijuana. • The new Colombian drug lords soon took over the producing and distributing of the marijuana that was produced in Colombia. • During the 1970's the Colombian Drug Lords began focusing their attention on supplying a vast amount of cocaine • In the late 1980's when law enforcement began to really crack down on the transporting of coca base to Colombia, the Colombians began planting and growing there own coca plants • cocaine can be transported much more easily and has a much higher profit than does marijuana. http://www.healthjockey.com/images/marijuana-herb.jpg http://www.typicallyspanish.com/spain/uploads/2/cocaine_lines_on_a_mirror_1__1_.jpg

  14. Colombian Smuggling • Daniel Rendon Herrera was a Columbian drug cartel • captured on April 16, 2009 • Rendon had a $2-million bounty on his head in Colombia and has been indicted in U.S. federal court on charges of smuggling 100 tons of cocaine • In a raid in August on a Rendon arsenal, authorities seized 140,000 rounds of ammunition, among the largest illegal munitions caches ever found in Colombia. • Rendon's henchmen were responsible for more than 3,000 killings in recent years. http://images.tvnz.co.nz/tvnz_images/news2009/south-america/Daniel_Rendon_Herrera_2.jpg http://www.latimes.com/news/nationworld/world/la-fg-colombia-drugbust16-2009apr16,0,2299612.story

  15. Economy Drug Trade Analyze Drug Problem New productions and imports of marijuana Cocaine being produced in Colombia Drug smugglers supplying the world with massive amounts of drugs Colombia Economy Unemployment rate:14.2% Population below poverty line:55% Mexican Economy Unemployment- 3.7% Population below poverty line:40% Drug Problem gangland killings have reached 5,376 117 percent increase of deaths have occurred in the year

  16. Is it an Economically Smart Idea to Rid of the Drug Trafficking Market Altogether? • The decriminalization of drugs in the United States would inevitably lower or eliminate the risks of drug trafficking and, consequently, the huge profit margins of drug traffickers will be lost to make society a “more safe place” • But trying to stop drugs at the border or at the source makes no economic sense, so long as drugs remain illegal in the United States. In the illicit drug industry, most of the value of those drugs (as much as 90 percent) is added after they enter the United States. That merely reflects the fact that the risk premium of selling drugs increases as the drugs approach the point of retail sale. • The illicit drug trade is a legitimate drug market and thus brings in revenue and jobs– if riding of the market altogether, third world and developing nations will be especially hit hard • The size of the world's illicit drug industry is equivalent to 0.9% of the world's Gross Domestic Product or higher than the GDP of 88% of the countries in the world

  17. Is it even possible to stop the Illicit Drug Trade? In third world countries? In America? Drug trafficking has become a major asset to the economies of many nations, mostly third world nations because they depend on their cash crop (the illicit drug) to sell greatly. Efforts to exterminate crops and outlawing of traffic put only a small dent in the profit margins of traffickers since the trade is so massive, it would take years and years to end the trafficking

  18. Anti-Drug Trafficking Efforts go Global • Countries all over the world are working with the United Nations to stop the international illicit drug trade • Drug cultivation in South America (Peru and Bolivia, third largest producers for cocaine) are down 70% • Participating countries in the Western Hemisphere are confronting the drug trade • Mexican Anti-Drug Trafficking organizations have been cracking down on the violence that goes along with the drug trade more than ever before • Cocaine drug addicts have dropped in the U.S by 3.4 million alone • Colombia’s government, notoriously known for its drug trafficking in cocaine has been making great strides in the reduction of cocaine cultivation • The U.S Drug Enforcement Agency is a well funded organization known worldwide. It has been working closely with the UN by making communities world wide safe from the abuse, violence, and corruption that goes along with the trade of illicit drugs

  19. Or…Should it Morally be Put to an End?

  20. Is the World Today a Better Place to Live in? • While the Latin American countries’ Economy is suffering the world is not a better place to live in • Corruption in Latin America is at an all time high • Drug Cartels are supplying Latin America and United States with drugs on the streets No

  21. Pictures Cited • http://www.gtipphotos.state.gov/cc_gallery/gallery/images/4.1419_Brick-making2.jpg (picture of little boy slide 1) • http://media.photobucket.com/image/drugs/jimstaro/fort_bragg_drugs_071129_ms.jpg (marijuana slide 1) • http://www.wired.com/images_blogs/wiredscience/images/2008/02/19/ecstasy.png (ecstasy slide 1) • http://www.borgenproject.org/sitebuilder/images/Africa_poverty-383x480.png (poverty slide 1) • http://kalodhvani.org/contents/photography/photographs/history/13.jpg (opium den slide 2) • http://upload.wikimedia.org/wikipedia/commons/6/60/MV_Gatun_Cocaine_seizure_by_USCG.jpg (cocaine shipment slide 2) • http://web.stratfor.com/images/northamerica/map/Mexican-drug-cartels-map-2.jpg (drug trade map slide 3) • http://lawblog.legalmatch.com/wp-content/uploads/2009/02/drugs.bmp (picture of drugs slide 4) • http://www.dc.state.fl.us/pub/timeserv/annual/chart31.GIF (fiscal year graph, US drug graph slide 4) • http://www.cityofdouglaswy.com/vertical/Sites/%7B52347BB1-2476-45A1-A80E-FDF4BD158A35%7D/uploads/%7BCB8221C6-27BE-4B2D-AE32-F84CCFD582EA%7D.JPG (meth use over 10 years slide 6) • http://a.abcnews.com/images/Nightline/ht_meth_teeth_071001_ssh.jpg (meth slide 6) • http://blogs.nyu.edu/blogs/gh5/ip/drugdoj.gif (drug trade arrests slide 6) • http://www.novanewsnow.com/imgs/dynamique/articles/gros/WashedDrugsNet_1.jpg (slide 8)

  22. Thoumi, Francisco E. (1995).  Political Econonmy & Illegal Drugs in Colombia.  Colorado: Lynne Rienner • George, Susan (1992).  The Debt Boomerang.  San Francisco: Westview Press • Scott, Peter D. & Marshall, Johnathan  (1991).  Cocaine Politics.  Los Angeles: University of California Press • Gootenberg, Paul  (1999).  Cocaine; Global Histories.  New York: Routledge

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